Morgan Stanley highlighted the manufacture of Taiwan semiconductors as the first choice of stock after solid capital expenses of artificial intelligence from Meta and Microsoft has helped to dispel concerns. The bank currently has an overweight note on the actions of the manufacture of semiconductors in Taiwan dominated by Taiwan. The lens of analyst Charlie Chan of $ 1,288.00 NT implies an increase of increase of 42% compared to April 30 of the fence of $ 908.00 nt of the action. Taiwan semiconductor manufacturing actions negotiated in Taiwan lost 12% this year. The US actions of action receipt, negotiating under the TSM TVOIT on the New York Stock Exchange, slipped almost 13% over the same period. TSM YTD MOUNTAIN TSM YTD Chart wrote that before, three major overhangs “prevented us from doing this, the best quality stock that we cover, our first choice during the recent stock market turbulence”. However, strong expenses of the “magnificent seven” have since changed their minds. “With the robust advice from Meta and Microsoft’s Capex, we put TSMC back on our first choice,” he wrote. “We expected a quick rebound in the stock once these overhangs are deleted.” The first overhang of Chan Cited was questions about the sustainability of AI’s demand. Meta and Microsoft’s suggestions that AI demand remains strong has helped to mitigate these concerns, he said. Meanwhile, a joint venture between Taiwan Semiconductor and Intel has now been excluded. In the end, this could be for the benefit of the company, Chan added. “Since Intel technology works quite independently, we can see why TSMC management has not seen a JV possibility,” he wrote. “This echoes our previous opinion according to which the interest of TSMC for this could be weak because it would not benefit the shareholders of the company and would create a conflict with its other customers.” The final overhang that has been deleted is a concern about the impact of American prices on semiconductors and semiconductors manufacturing equipment, likely to be announced after May 7, said Chan. The analyst provides that the costs, if applicable, will be absorbed by customers. “We believe that the investment of US $ 165 billion in TSMC in the United States could increase the risks of exemption. Even if there will be semi-tariffs, in its previous call for profits, TSMC has already said that the cost would be transferred to customers,” Chan wrote.
Morgan Stanley says that this is the first choice to buy after Microsoft and Meta Son Clear on AI expenses
